BLUEGRASS MANOR
ST. MATTHEWS, KY
$46,100,00
150,000 SQ FT.
AT A GLANCE
Anchored by Whole Foods.
Short Term Leasehold interest --- 41 years.
Closed at 6.65% cap rate --- historically strong for a leasehold.
Buyer Profile: Private KY Family Office.
CHALLENGES
Short-term leasehold interest remaining --- 41 years.
Large LA Fitness building footprint.
Lack of long-term income growth.
MARKETING STRATEGY
Strong performing Whole Foods store / irreplacable (A+) real estate.
Under market rent of anchor tenant combined with potential pad development.
Nominal ground rent payment throughout the term ($12,000 annually).
Focused on long term redevelopment opportunity.
RESULTS
Garnered significant offer activity from a variety of investor profiles including pension funds, large private equity funds, REITS and private investment companies.
Closed at contract price with a nominal offset due to 20-year existing roof.
Closed at a cap rate of 6.65% for a leasehold interest with 41 years remaining.